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HSE to be funded through the Vote of the Minister for Health from 1 January 2015

The Minister for Health, James Reilly TD, announced today (20 December) the publication of the Health Service Executive (Financial Matters) Bill 2013, following approval by Government.

The legislation provides for the funding of the HSE and its successor through the Vote of the Minister for Health from 1 January 2015. The HSE Vote will be abolished and a new and robust financial governance structure will be introduced. It follows on from the enactment of the Health Service Executive (Governance) Act in July, under which the HSE Board was abolished and replaced by the Directorate.

“This is an essential part of our health reform programme Future Health”, the Minister said. "This legislation will enable new funding arrangements to be put in place as part of the wider restructuring of the health services and the ultimate implementation of Universal Health Insurance. It strengthens accountability arrangements and provides for more robust procedures for the approval of capital expenditure.”

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Notes for Editors

The Health Service Executive (Financial Matters) Bill 2013 will:

· Provide for the disestablishment of the Vote of the HSE and the funding of the HSE through the Vote of the Office of the Minister for Health from 1st January 2015.

· Establish of a new financial governance structure for the HSE which is necessary as the existing statutory system of control, which exists by virtue of the HSE having its own Vote, will no longer apply to the HSE.

· Give the Minister the power to set a net Budget for the HSE and approve as part the Service Plan the Executive’s gross Income and Expenditure plan. It also reintroduces the first charge principle whereby if the HSE exceeds its budget it one year it must discharge the liabilities arising as a first charge the following year.

· Impose certain legal obligations on the Director-General of the HSE to ensure that the Executive operates within the financial limits imposed by the Minister.

· Provide for a new procedure for the approval of Capital Plans.